News for hackers. Stuff that matters.
Re:LLMs Are Cheap by pr337h4m on Monday June 09, 2025 @11:59AM (#44225826)
Uber and Lyft rely on network effects, which do not exist in any meaningful sense for LLM API providers.
Re:LLMs Are Cheap by nitwit005 on Monday June 09, 2025 @07:22PM (#44230720)
Brand is huge in every market. It's hard to get people to visit your website at all. People know about OpenAI, and look it up.
Re:LLMs Are Cheap by TZubiri on Tuesday June 10, 2025 @02:21AM (#44233248)
No network effect + already profitable.

Not at all like Uber, let it go

Re:LLMs Are Cheap by nitwit005 on Tuesday June 10, 2025 @01:54PM (#44239476)
Incoherent response.
Re:LLMs Are Cheap by n4r9 on Tuesday June 10, 2025 @05:03AM (#44234337)
Yeah, that's definitely a factor in the attempt to "undercut and outlast". I guess I have two defenses: firstly, network effects might not be crucial, it might be enough for there to be a small cost to changing provider; secondly, I imagine the providers are finding ways to use network effects to bolster adoption - e.g. "Find me a party date when all my friends are free, book the catering and message them with invites".